America's energy strength lies in the abundance and diversity of its energy resources. Natural gas use is expected to increase 40% by 2025, while production of natural gas is predicted to grow at a slower rate. To ensure abundant, affordable, reliable natural gas for American consumers, the United States will not only have to increase development of its existing resources but also look at expanding other key components of the nation's energy mix such as LNG.
The National Petroleum Council in its 2003 study: Balancing Natural Gas Policy – Fueling the Demands of a Growing Economy noted that:
Traditional North American producing areas will provide only 75% of long-term US natural gas needs through 2025.
LNG will provide almost 17% of US demand in 2025. (Other new sources of supply include Alaska and the Rocky Mountain States.)
Additional LNG capacity may be able to lower the price of natural gas by 20 to 60 cents per MMBtu (in 2002 dollars) in 2025. However, restriction of new LNG supplies could potentially raise the price by about $1 per MMBtu (2002 dollars in 2025).
The Energy Information Administration's Annual Energy Outlook-2005 report projects that net LNG imports are expected to increase from 0.4 trillion cubic feet in 2003 to 6.5 trillion cubic feet in 2025, accounting for over 21% of total U.S. natural gas supply as compared with 2% in 2003. By 2025, expansion is expected at the four existing onshore LNG marine import facilities and construction of new LNG terminals is anticipated in the Bahamas (to serve Florida markets), along the East Coast, West Coast, and along the Gulf Coast. In addition to these facilities, regasification capacity is expected to be constructed in Baja California, Mexico, to serve both Mexican and Southern California markets. There is also the possibility of gas being imported into the United States from Canadian LNG import terminals.
LNG Home Page